Chinese Egg Futures Trader Who Made A Fast $96.63 Million

Ever thought of trading egg futures? Well most of us have never thought of trading these egg futures. Now before we process do you know this interesting fact. Can you trade onion futures? No you can’t trade onion futures at least not in US. Trading Onion Futures are banned in the US. The Onion Futures Act is a United States law banning the trading of futures contracts on onions. In 1955, two onion traders, Sam Siegel and Vincent Kosuga, cornered the onion futures market on the Chicago Mercantile Exchange. The resulting regulatory actions led to the passing of the act on August 28, 1958. As of 2014, it remains in effect.

Now let’s get back to our story on how a Chinese former teenage soldier made a fast $96.63 million trading egg futures. It was Beijing’s decision to launch the egg futures market in November 2013 that allowed Zhang, from a poor family in the South Eastern port city of Ningbo, to earn his reputation as the trader who dominated the exchange last year.

“If I let it fall, it fell, if I wanted it to rise, it rose,” said Zhang, who at the time worked in a specialist consultancy in Wuhan, which collected daily information from across the country on eggs.

Many agricultural commodities trade on futures markets, which developed to allow farmers to hedge against fluctuating prices, although China is currently the only country that trades egg futures, according to the Dalian Commodity Exchange.

With the regulation getting more tight in China expect something like the Onion Futures Act. By the way, Zhang now trades other markets as well and he was not lucky this time when he lost 400 million yuan in just 2 days on bad calls last year.

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